Partnership disputes are nothing new. In fact, many analysists agree that the majority of partnerships are doomed to fail. Fortunately, many business owners draft strong partnership agreements that provide for dissolution while including restrictive covenants.
With the increasing popularity of online marketplaces, many organizations choose to maintain a significant presence in the digital arena. Additionally, it is not uncommon for a business to exist solely as an online shop. Can this lead to additional stress on the business partnership?
There are numerous factors that can lead to a partnership dissolution in the digital marketplace, such as a fluid environment. In many ways, the digital age has allowed organizations to be more nimble in their decision-making than their traditional counterparts. This often leads to a quick turnaround in several areas. From new product offerings and changed policies to revised mottos and updated business strategies, the online marketplace is quicker to absorb these changes than traditional brick and mortar businesses. This can be a frustrating, confusing environment for many business owners.
Additionally, many partners have gained their experience outside of the digital realm. Unfortunately, this can make them resistant to change. One partner might be set in their ways while the other partner fully embraces the nuances of online business ownership. Unfortunately, this can create a rift that will eventually tear apart the partnership.
What can be done?
From the outset, the partners must address potential issues when developing the business. From employment contracts to operational guidelines, the significance of the online marketplace cannot be ignored. Additionally, the partners can agree on certain provisions that might come into play when unavoidable trouble is on the horizon.
Often, the dissolution of a partnership is similar in format in both an online business and a traditional organization. Partners might sell the business and divide the profits, or one partner buys the other’s stake in the organization. It is wise to prepare for these contingencies early in the business formation stages. Failing that, you should revise the partnership agreement to include the recent growth of your business and the changes in your marketplace.